CB Bureau Corporate social responsibility (CSR) was an alien
term for the majority of Indian businesses until a few years back. The ‘term’
became a ‘concept’ over time, yet has remained more alien than not. There are
as many interpretations as there are talking and decision-making heads”for some
it is philanthropy, for some it is an obligation, for some a taboo, for some an
opportunity to market, for some a crisis management tool, and for a handful
few, an interesting way of doing business. Hence, CSR in India is at its
‘confusion in the beginning’ stage. It is like one of those foreign ideas that
take time to be understood properly. So it is that only a few businesses – mostly
complete foreigners, or influenced by foreign markets, or being run by foreign
managers in India – seem to have the right CSR approach. They are the CSR
pioneers and are now on their way to becoming sustainable businesses.
Unfortunately, only a handful of these companies exist
in India. Rest all, whatever the claim, are actually engaged in philanthropy,
cause marketing, or one-off social activities merely as a public relations exercise
or a means to earn quick media mileage.
Now, with the government intent on putting in place
stringent CSR norms, and consumers becoming resolutely aware and inclined
towards responsible businesses, the concept has become a ‘must know and must
practice’ code of conduct for all. Yet, missing are the knowledge, the
approach, the plan, the people, the idea, and perhaps the clarity of mind.
A few days ago, in an interview with a business
publication, the management lead of a prominent lifestyle retail chain claimed
that his company has always believed in CSR and that they work towards that as
part of their overall progression. When he elaborated on the activities, the
gentle managing director with years of hardcore retailing experience must have
thought that he sold the idea very well. Yet, unwittingly, he had actually spilled
the beans.
This is what he said: ‘One of the key things we have
done in the past three years has been celebrating our birthdays and holidays.
Every store has its anniversary. We go out to old-age homes or orphanages and
entertain the kids or entertain the old-age-home people. Read for them, write
for them, play music for them…’
Well, yes, that was the token from a million-dollar retail
chain towards CSR.
The
gurus of responsibility
In the last couple of years, since the inception of
CauseBecause, we have been interacting with several CSR professionals across
business verticals and have stumbled upon interesting as well as disappointing
truths about the depth of CSR understanding and implementation in the country. Perhaps
the most inexplicable aspect is that the newly set-up CSR departments within
organizations are headed by non-CSR professionals, only a few of whom can
actually hold forth on the concept of ‘sustainable business’.
A rough estimate shows that most CSR heads primarily
come from three categories of professional backgrounds – non-government
organization, corporate communications, and advertising and marketing. Naturally,
their understanding of CSR is majorly influenced by the nature of their former
professions. The CSR programme of one of the leading software developing
companies is philanthropic in nature because the CSR in-charge there has over
20 years of experience in fundraising for NGOs. And yes, she admits that she
does not understand business.
A leading telecom company keeps organizing one-off
environment education workshops or blood donation camps because their CSR head is
from a corporate communication background. He wants good visuals and the CEO’s
quotes in the national dailies.
The CSR department of a large beverage company is
headed by a gentleman with hardcore sales and marketing experience. CSR for him
is an additional channel of revenue generation. His first question to his CSR
team before any activity runs like this: ‘How many bottles of our soft drinks
you think will move from the shelves after this activity?’ Another sample: ‘Should
the spends for this activity go under marketing budgets or should I write them
under charity?’
CSR departments are being set up in almost every
large company. Even small-scale enterprises have joined the race to prove that
they believe in responsible businesses. There is a sense of the perfunctory to
all of it, but that is beside the point. All marketing and advertising agencies
now have a ‘CSR guidance’ cell (the guides are not known, though). Some of the
leading market research companies have CSR chairs now. The business of CSR
consultancy is steadily spreading. Interestingly, when searched online, there
is not much difference between the number of property consultants and the number
of CSR consultants. More so, financial lawyers
and tax consultants and even rural marketers are claiming to have CSR
expertise.
Is it that some sort of a CSR boom”like the booms
that visited IT and BPO”is waiting to happen? Well, only this ‘ready to hop on
to the wagon’ lot would know.
The new Companies Bill that might make spends (two
per cent of net profits) towards CSR mandatory could be one of the reasons for
this mushrooming of CSR experts all over. All businesses would seek guides,
consultants, thinkers, and implementers for their CSR activities. However, with
the bill still being discussed in the parliament, all of us may just wait and
watch.
The ‘spread CSR knowledge’ business, too, is gaining
momentum. In the last two years alone, I have seen banners of at least 20
national-level conferences, seminars, and forums themed around responsible and
sustainable businesses. The participants in almost all of these events are the
same mid-level to senior-level executives of large corporate houses, which are
already recognised for their sustainable businesses. The sponsors of such
events can be counted on the fingertips – the list includes a few United
Nations affiliates, blue-chip software companies, a few billion-dollar-worth
fuel companies, and a sprinkling of coal, iron, and steel giants.
It seems that the sustainable business world is
altogether a different ecosystem or an elite club that emerging businesses or
traditional Indian businesses are ‘not allowed to’ or are ‘not willing to’
enter. My analyses say that they do not know ‘how to’ enter this club. And the
question that I do not have an answer to is how will they ever be allowed to, be
willing to, or know how to enter that club.
The positive point at this confusion stage is this: conversations
around CSR have begun. The big-budget infrastructure developers are now
painting their hoardings green and are SMSing what ‘they think’ are the
sustainable building ideas. Coffee, pizza, and burger guys are hiring the disabled,
associating with NGOs, and installing energy-efficient equipment. The most polluting
chemicals and fuels guys are now claiming to be responsible – they plant trees,
create biodiversity parks, and ensure safeguarding of the areas they work in.
Information technology giants have formed foundations to train and recruit the
underprivileged ones. Proceeds through sales of many FMCG products go to NGOs,
while some consumer goods giants are actively engaged in uplifting health and
hygiene standards of rural Indians. Healthcare companies have several free services
for the poor. Automobile majors are continuously researching upon and producing
more fuel-efficient and environment-friendly vehicles. There are huge ‘green’
and ‘ethical’ claims in full-page ads, and packets of many food, fashion, and
lifestyle brands claim ‘organically produced product’, ‘made via eco-friendly
processes’, ‘good for health’, ‘we care for our planet’, ‘we are responsible’,
and so on.
How can corporate social responsibility, diversity
practices, and sustainability translate into strategic development?
How can the
right CSR practices help in the overall business growth of an organization”from
a large multinational company with a diverse set of products to an informal trader
based at some small town in India? How can CSR help in the creation of shared
value? Is CSR only meant for stakeholders or for the society as a whole? And
does doing what is best for society mean sacrificing profits? Does it really
help in a company’s long-term success?
There are many such larger questions that ardent CSR
practitioners seek answers to. Soon, many of them will have variously better
versions of what CSR is. Until then, we shall appreciate the responsible
beginning.
Picture: By Alan Hayball, http://www.ahayball.co.uk
Cow – After too much ‘creme de menthe’, the cocktail cow realised it was time
to redress the colour balance with some more delightful concoctions.